Aluminium was down a touch as trading turned cautious on settlement day for the three month contract and as stocks of the metal on the London Metals Exchange registered a rise.
Investors had been bracing for a volatile session as one player is said to have taken substantial positions, accounting for the bulk of stocks held by the London Metals Exchange.
If the party concerned opts to take delivery of the metal, the LME's stocks may be wiped out, in turn lifting prices substantially. On the other hand, the party concerned may choose to roll over positions, smoothing out prices movements.
"Yesterday's large increase in LME stocks is likely to be repeated over the next few days as the shorts elect to deliver metal and we monitor whether the large long position is being rolled forward," said John Reade at UBS.
Peter Fertig at Dresdner believes stockpiles just now suggest that the party in question will roll over positions held, although the situation is still not clear.
At 5.11 pm, Aluminium high grade for three month delivery was down 7.50 usd at 2672 usd/tonne.
Elsewhere, copper came under renewed pressure today after a rise in copper stocks on the LME. Yesterday, copper prices were up due to a drop in stock levels.
LME copper for three-month delivery, was down 50 usd at 5,640 usd a tonne.
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